The Challenges of Lending in Indian Country

Commercial lending in Indian Country may require special arrangements, largely because of the sovereign status of tribes and the unique status of Indian lands. Tribal trust lands generally may not be sold, taxed, or encumbered, making it a challenge to perfect a bank’s mortgage lien(s) on real property. Some banks are uncertain about lending to businesses and individuals in Indian Country.*

Cash flow is at the heart of growth opportunities for small businesses.  Access to cash is essential. Developing a good relationship with lending institutions is one of the key factors of successful businesses.

“Native buyers get disproportionately higher interest rates. Tribal lands receive very little financial investment and have a much higher need than other rural areas,” said Jason Richardson, senior director of research at NCRC.~

These are a few reasons why Two Rivers CDC is hosting a round table discussion with SBA, local lenders and Native CDFIs  to discuss the challenges to small business lending and to explore possible solutions.

Please contact info@tworiverscdc.org if you would like a seat at the table. 10am-3 pm, Friday, Oct 25.  Space is limited

References

• *https://www.occ.gov/publications-and-resources/publications/community-affairs/community-developments-insights/pub-insights-feb-2016.pdf
• ~https://nationalmortgageprofessional.com/news/challenges-and-solutions-home-lending-native-american-communities-presented-ncrc